Martin Lewis gives major update on chances of energy bills NOT going up in April – and it could save millions money
MARTIN Lewis has issued an update on whether he thinks energy bills will rise in April.
Speaking on BBC Radio Four’s Today programme this morning, he said there’s a “better than 50% chance” of bills NOT rising to £3,000 in April.
The Energy Price Guarantee, which is currently set at £2,500, is set to rise by £500 in April.
It determines how much the average household pays for energy bills.
But consumer champion Martin Lewis has said there’s an 85% chance the government will extend the help, so that the cap remains at £2,500 come April.
Chancellor Jeremy Hunt previously said this will not happen.
Speaking on the radio this morning, Mr Lewis said: “I wouldn’t say it’s a done deal. I was saying in the office I think it’s a better than 50% chance.”
He confirmed a letter which he sent to the chancellor asking to postpone the rise until July has been backed by 110 major charities including Which?, Citizens Advice and energy trade body Energy UK.
He said a price cap rise by July is “unlikely to have any impact on us” until the next again April.
He continued: “It’s saying don’t do this – it’s not good for individuals to put prices up, it’s not good for people’s mental health, it’s not good for consumer confidence which means it’s bad for business.
“It would also keep the inflation rate down if we don’t put prices up.
“It’s a bit of a no brainer.”
The number of households struggling to afford their bills could rise from 6.7million to 8.4m as a result of the April rise, according to fuel poverty campaigners.
However, the money saving expert said some energy firms are planning to keep current rates into April.
He said: “I’m hearing they have not been told that the rate is staying. They have been told that there is an attempt to keep the rate at £2,500.
“So we’re not at the smoking gun stage that this is definitely happening, but I would say we’re at an 85% likelihood that the price won’t be going up.”
He added: “If there’s no U-turn, you’ll pay 20% more than you do now. If there is a U-turn, you’ll pay exactly the same as you do now.”
What help is available?
The Alternative Fuel Payment is another way struggling households can get help.
People on a direct debit should have had the cash into their account and those paying by standard credit should have had £200 added to their energy account.
Customers on prepayment meters should have had a voucher for the money by text, email or post.
Around 900,000 households can apply, including people who live in houseboats or have a communal electricity supply.
The government’s online portal is now open.
Millions of households started receiving a £400 energy bill discount from October 1.
Households will have already received a £66 and £67 payment every month.
There will also be a payment worth £67 in March.
And don’t forget between November 2022 and March 2023, a £300 one-off “Pensioner Cost of Living Payment” is being paid out to eight million households.
It is being given to those who already get the winter fuel payment – which is worth between £100 and £300 for those over state pension age.